*NEWS*INTEL & XEROX’S NEW IMAGING CHIPS !

Intel Corp. said on Wednesday (today) it will launch new microprocessors jointly developed with Xerox Corp. that are designed for use in digital copiers, scanners and printers.

Intel, the world’s largest chip maker, and Xerox, best known for its office copy machines, have been working together on the two digital imaging processors for three years, the companies said.

The chips will allow makers of document imaging machines to reduce their development costs and time by adding new features via software during the design cycle or as an upgrade after the products are in use, they said.

Santa Clara, California-based Intel will manufacture and sell the chips and Xerox, based in Stamford, Connecticut, is developing products that will use the chips, according to the companies.

The chips will be available in volume by the end of this year and the first Xerox products based on the processors will be introduced next year, they said.

Intel is the leader in supplying processors used in personal computers and laptops and also offers chips used in handhelds and networking gear. Digital imaging is a new area for the company and the new chips will eventually be followed by ones that target the video processing market, said Patrick Johnson, general manager of advanced media processor operation at Intel.

Xerox said the collaboration will give it a leg up in building a wider range of printers and commercial presses that print faster with enhanced features.

Moreover, Xerox believes it can get them to market more quickly, and cheaper, by being able to take advantage of the design’s benefits before it is made available to others.

Herve Gallaire, Xerox’s chief technology officer, said the co-developing is the first for Xerox in the hardware area. “The performance is higher than what we could have had for the same price using our internal specifically-designed chips,” he said.

Xerox is no stranger to advanced computer-related design, since its Palo Alto Research Center (PARC) is credited with breakthroughs such as the laser printer and the computer mouse. Critics, however, have complained that the company failed to capitalize its innovations. Gallaire said Xerox is looking into other design collaborations.